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Move Loan To Mortgage Or Not?

CD_Man
CD_Man Posts: 32 Forumite
in Loans
Hello - I have a £17k outstanding loan with Natwest which Im struggling to pay each month, I have spoken to Northern Rock & I can transfer the loan on top of my mortgage but this will then be spreading the loan over 30 years but i will be able to afford it so now Im in a catch 22 situation! Ive only had the mortgae for a year.

What would you do?

Thanks

Comments

  • tom188
    tom188 Posts: 2,330 Forumite
    post on the debt free wannabe board where the helpful people will point out how to cut down expenditure so that you can pay more to your loan.

    dont put it on your mortgage unless you really have to, it will just be a millstone round your neck for even longer.
  • MarkyMarkD
    MarkyMarkD Posts: 9,913 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I don't entirely agree with tom188.

    If the interest rate on the loan is significantly higher than the mortgage rate, you will be saving money in interest by consolidating it.

    You don't HAVE to pay the extra loan over 30 years - you can have a different repayment term for the further advance. And if the rate is lower, you can pay less per month but STILL repay it over the original term of the loan.
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